A* Summary Notes: Unit 3 - Bridging the Development Gap
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Unit 3 - Bridging the Development Gap
Institution
PEARSON (PEARSON)
Detailed notes on the development gap, reasons and impacts of it, and efforts to close the development gap. These notes are based on the IAL Edexcel Geography specification, but the content is also relevant to other exam boards. Contains definitions of key terms, detailed notes on each sub-topic an...
3.8.1 - The
causes of
Enquiry question: What is the nature of the global development gap and how has it
the
developm arisen?
ent gap
The global development gap can be measured using single indicators (GDP p.c. (nominal
and PPP), LE) or indices (HDI, GDI) with each having pros and cons. (13)
Development: the ongoing process of improvement, usually measured in economic terms.
The concept of development is Eurocentric and ignores environmental impacts.
Development gap: represents the widening gap between the rich middle class and roughly 1bn people
that live on less than $1.90 PPP per day.
Development Indicators
Measure how developed a country is.
Can be used to rank and compare levels of development between countries.
Single indicators are less useful than indices with several metrics.
Single Indicators
Definition Advantages Disadvantages
GDP The monetary value of all Can be used to track the Can hide inequalities as it
finished goods and growth of a country’s does not show the
services made within a economy, as it indicates distribution of wealth.
country during a specific the size of a country’s
time period. economy. Can be manipulated by
governments wanting to
Used to rank countries to appear poorer to collect more
establish a fair system of aid.
aid payments.
Does not take into account
Fairly easy to calculate subsistence or informal
Developm from official government economies, which are very
ent figures. important in LDCs. For
progress example, around 60% of
can be Nigeria’s economy is
measured informal.
in
different Difficult to obtain accurate
ways measures of all goods and
services.
GDP per The monetary value of all Represents a country’s Can hide inequalities within a
capita finished goods and economic productivity and country – could be skewed by
(nominal) services made within a the advancement of its very rich minorities even if
country during a specific industry. the majority of the
time period divided by its population earn very little.
population. (GDP divided Can be used to understand
by population.) how a country’s economy Does not include
is growing with its contributions from informal
population. economy.
Easy to rank and measure.
GDP per A measurement of prices Allows for standard Harder to measure than
capita PPP of specific goods in comparisons of real prices market-based rates.
(Purchasing different countries to between countries and
Power compare the absolute different currencies. A wide New price comparisons only
Parity) purchasing power of the range of goods has to be available at infrequent
countries’ currencies. considered. intervals.
PPP exchange rates are PPP does not reflect reality
more stable and less due to differences in local
affected by tariffs, so can costs, taxes, tariffs and
be used to compare competition.
economies of countries.
One-to-one comparison
difficult to achieve due to the
, large amount of data that
must be collected and the
complexity of the
comparisons drawn.
Life How long people are able Can indicate the LE does not always corelate
Expectancy to live in a country, healthcare quality, level of to income and development
based on predicted sanitation and provision of level, so is not always a good
advances, current elderly care in a country. measure of wider
services and the risk of Reflects wider quality of development.
diseases. life and development level.
Indices
Composite indicators present complex issues in one aggregate value – can be used to support
decision making.
Can be used to rank countries on complex issues.
Can attract public and stakeholder interest on issues measured.
Easy information for general public to compare.
Index Definition Advantages Disadvantages
HDI (Human Composite indicator that More holistic – takes into May hide widespread
Developmen includes many factors account more factors. inequality because it does
t Index) that affect development, not consider all factors, e.g.,
including life expectancy, Used to classify countries pollution levels, gender
expected years of into groups based on their disparity, protecting personal
schooling and average level of development. freedom.
years of schooling, and
GNI per capita. Scores Demonstrates that a For example, Hong Kong was
each country from 0 to 1. correlation between ranked 4th on the HDI in
economic and social 2021, while the wealth gap is
development does not one of the largest, with the
guarantee that economic wealthy making 60 times
development brings social more than the poorest.
development.
Hard to calculate and
Provides a broad picture of methodology affects data set
a country that includes produced.
social development.
GDI (Gender The ratio of the female Used to classify countries Cannot be used
Developmen HDI to the male HDI. into groups depending on independently of HDI – does
t Index) how gender-equal they not directly measure gender
Values below 1 indicate are. inequality.
higher human
development for men Provides insights into Not comprehensive – does
than women; values gender disparities in not consider all factors
above 1 indicate the health, education and affecting gender
opposite, therefore income. New policies can development.
values close to 1 indicate be designed from this
higher gender equality. data.
Trends in the HDI
Countries that top the HDI are developed, e.g., Norway, Switzerland, Japan.
o They have large economies and advancing technology (quaternary) industries, resulting in
a high GDP per capita.
o Cities and towns are well-structured, with strong infrastructure and transport links,
excellent supply of clean water, electricity and food to households.
o Most of these nations have free education systems, with opportunities to progress onto
further education (university) or into employment.
Development differences at a global scale reveal complex patterns, and national scale
differences also exist. (14)
Over the last decade, inequality between countries has decreased, while inequality within countries has
increased.
Development differences exist on three scales:
Global – between nations.
, National – within a nation, e.g., England.
Within cities, e.g., London and HK.
Development Differences on a Global Scale
The Brandt Line
Way of dividing between rich and poor countries.
Wealthy countries typically located in the Global North and poorer countries in the Global South.
Outdated because the divide between the rich North and poor South is no longer as clear as it
used to be – Asian countries have become much wealthier since the 2000s.
Gini Index and Lorenz Curve
Gini index: a statistical measure of income inequality that condenses the entire income
distribution for a country into a single number between 0 and 100 (Gini coefficient measures from
0 to 1).
The higher the index value, the greater the scale of income inequality.
In a country with a totally flat income distribution (every person receives the same income) would
have a Gini index of 0.
South Africa’s Gini index value is 65.0, Iceland’s is 26.3, UK’s is 35.7.
Lorenz curve: graphical representation of income distribution to measure inequality within a
population.
The further the Lorenz curve from the line of equality, the more unequal the country.
Unequal society leads to lower economic growth, more crime, less social mobility and lower
happiness.
Case Studies
Comparing single indicators and composite indices of different countries shows the development
gap on a global scale.
South South
Indicator Haiti India China Brazil UK
Korea Africa
GDP US$20.94 US$3.18 tn US$17.96 US$1.67 US$419 US$1.6 tn US$3.1 tn
bn tn tn bn
GDP per US$1,750 US$2257 US$12,72 US$32,25 US$7055 US$7507 US$46,51
capita 0 5 0
GDP per 137/196 3/196 1/196 14/196 33/196 8/196 9/196
capita PPP
, Life 64.8 years 72.0 years 78.8 84.1 65.3 74.0 80.9
Expectancy 165/200 126/200 years years years years years
52/200 7/200 178/200 82/200 30/200
HDI 0.535 0.633 0.768 0.925 0.713 0.754 0.929
163/191 132/191 79/191 19/191 109/191 87/191 18/191
GDI 0.890 0.828 0.960 0.933 0.984 0.995 0.966
131/166 153/166 87/166 109/166 37/166 12/166 74/166
Development Differences on a National Scale
Within countries, development is uneven.
The most developed areas tend to centre around the capital.
England North-South Divide
Half of all FDI projects go to London and SE England, as power is concentrated at the capital.
The highest life expectancy at birth between 2016-18 was 71.9 in London, 18.6 years longer than
in Blackpool with 53.3 years.
o Due to higher mortality from heart and respiratory disease and lung cancer.
o 20% higher risk of dying under 75 in the North.
Less funding for education in the North – in 2019, 25.7% of GCSE grades were above 7 in London
compared to 16.4% in the Northeast.
Average income for top 1% of UK income distribution is £150,000, average income for poorest 1%
is £8,430.
Bottom 40% of households get almost half of their income from state welfare benefits.
UK one of the most unequal rich countries – poorest 10 th get 1% of total income, richest 10th get
31%.
Norway
Strong welfare state
Low unemployment – unemployment rate was 3.17% in 2022.
Falling poverty – poverty rate was 0.5% in 2019.
Gini index is 28.
High levels of household debt makes people vulnerable to economic shocks. Debt to income ratio
of households was 180% in 2011.
Very high cost of living – 9th most expensive country to live in.
High level of wealth inequality.
o Top 10% of households own 53% of total net wealth. Richest 1% controls 21%, top 0.1%
own 10% of total net wealth.
Monaco
Area smaller than NYC Central Park.
1/3 of residents are millionaires.
GDP per capita is US$165,420 – 2nd highest in the world.
No poverty.
Could be argued that there is no development gap.
Development Differences in Cities
London
Inequality if far higher within London than any other part of the UK – London is overrepresented at
both the bottom and top of income distribution nationally.
Measured after housing costs, 28% of Londoners live in poverty, compared to 22% across the UK.
Poor Londoners have better prospects when it comes to education and health than poor people in
other regions.
Hong Kong
Monthly income of top 10% of wealthy households is 44 times that of poor households.
Rent increased by 80% in 10 years, property prices have more than doubled.
Number of working poor households is 300,000, over 920,000 below poverty line.
Gender wage gap in the world in 14.1%, 20% in HK.
Poverty rate for whole population is 23.6%, 36.6% among elderly population.
Public expenditure on healthcare and social welfare, which would most benefit low-income citizens,
is much lower than other developed areas.
Housing is 36% of expenses.
There are Theoretical frameworks can be used to help explain the development gap globally and
a range of nationally (Dependency theory, Core-Periphery relations, Modernisation theory).
explanatio
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